Options at End of Lease Term

End of lease purchase options are determined at the inception of the lease transaction. Depending on the specific needs of the equipment user (lessee), the lease is structured with one of the following types of options at the end of the lease term.

Fair Market Value (FMV) Purchase Option

At the end of the lease term the end-user (lessee) has the following options:

• Purchase the equipment for the fair market value

• Return the equipment to the owner (lessor) at their expense

• Continuing making the lease payment and using the equipment

• Extend the lease for a pre-determined time period and payment to be negotiated with the owner (lessor).

Fair Market Value (FMV) Purchase

At the end of the lease term the end-user (lessee) will be required to purchase the equipment from the owner (lessor) for the fair market value.

Fixed % Purchase Option

At the end of the lease term the end-user (lessee) has the following options:

• Purchase the equipment from the owner (lessor) for a percentage of the original equipment cost agreed to at the commencement of the lease

• Return the equipment to the owner (lessor) at their expense

• Continuing making the lease payment and using the equipment

• Extend the lease for a pre-determined time period and payment to be negotiated with the owner (lessor).
   

Fixed % Payment Upon Termination (PUT)

At the end of the lease term the end-user (lessee) will be required to purchase the equipment from the owner (lessor) for a percentage of the original equipment cost agreed to at the commencement of the lease.

 $1 Buyout

At the end of the lease term and upon the payment of all lease payments, the owner (lessor) will transfer title to the equipment to the end-user (lessee).

Let Liberty Leasing Services, Inc. create solutions that provide the appropriate end of lease options for your clients dependent upon their individual circumstances and requirements.


 

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